The stock market has been struggling since last year due to high inflation and the Fed’s rate hikes. While the interest rates might go higher for longer, the central bank might consider going for a lower magnitude given the cooling inflation and a slowing economy.
The latest jobs report showed wages grew slower than anticipated, while ISM’s Non-Manufacturing Purchasing Managers’ Index showed that the services industry contracted in December. Moreover, inflation has been lower than expected for two consecutive months in October and November 2022.
